[SDIP-4] Veriscope VASP Grant

Summary The Shyft DAO BizDev Committee would like to propose a Shyft community vote on a grant of SHFT tokens to Virtual Asset Service Providers [VASPs] to fund Shyft Network gas fees for their usage in Veriscope until 31 December 2022 or until exhaustion of the grant, whichever is sooner.

Motivation Veriscope, built atop Shyft Network, is a protocol to fulfill the requirements of the Financial Action Task Force (FATF) ‘Travel Rule’ that requires the exchange of originator and beneficiary personal information between two VASPs (typically, crypto exchanges and custodians). It is widely reported that the Travel Rule has been slow to gain traction as regulation is slow to be enacted and enforced, and equally VASPs are concerned about transaction costs and which Travel Rule protocol counterparties will use. Veriscope has substantial advantages over all other protocols, particularly in respect of a frictionless approach, as well as the data privacy and security of originators and beneficiaries. It is also the only solution to resolve the so-called ‘Sunrise Issue’ where different VASPs start implementing Travel Rule at different times leading to large pockets of non-compliance. Regulators are particularly interested in resolving this issue and have viewed Veriscope positively in this respect. VASPs are required to post requests for information (attestations) about counterparty VASPs to the Shyft Network, and in so doing incur SHFT gas fees. To facilitate rapid network adoption and remove a barrier to decision making, it is planned that a SHFT token grant will encourage VASPs towards rapid adoption and selection of Veriscope, that in turn will build network traffic, attestations, and the largest community of VASPs on any Travel Rule solution.

Proposal The Shyft DAO proposes to grant an aggregate total of 10,000 SHFT towards funding gas fees used in connection with VASP attestations on the Shyft Network until 31 December 2022 or until the grant is exhausted. In order to qualify, a VASP must complete Veriscope integration and commence attestations to mainnet by 30 September 2022. Important Considerations: None

Actions For: Approval of the 10,000 SHFT grant to fund the initial seeding of VASP attestations until 31 December 2022 or until the grant is exhausted Against: Rejection of the 10,000 SHFT grant to fund VASP the initial seeding of attestations until 31 December 2022 or until the grant is exhausted